Just sold and profited

Discussion in 'Journals' started by crgarcia, Jul 27, 2009.

  1. I was buying DDMs for some months.
    I was expecting a slow (over years) recovery.

    This rally is completely out of touch with the weak fundamentals.
    Just sold my DDMs at $33.01
    A 21% percent profit.

    Now I'll wait a couple months to see if the market goes down a bit.
    Then I'll buy some DIAs and sell covered calls on it for some years to go.

    If the market goes down, well below 7000 for the Dow, I MIGHT buy DIAs on margin to sell covered calls on it.
  2. Excellent!
  3. Just sold a covered call

    DIA $90.65
    .DAVHL (DIA Aug 90 Call), received $2.25 for it.

    Now I just sold a few covered calls.
    I'll enter my full covered call position slowly, taking some months.
    (dividing trades over some months).
  4. On 8/21 the options expired.

    DIA went up, so the Calls I sold got assigned (at $90).
    The net profit was $1.60 per share, 1.76% in less than a month, not bad at all.
  5. Today, 8/28/09 sold another covered calls.

    As the market rallied too much on too short time, without enough support from the fundamentals, I sold slightly In-The-Money options, in case the market goes down.

    Purchased DIA shares
    For the .DAVIP (DIA Sep 94 Call) received a premium of $2.54 (altough some of it it's intrinsic value being an ITM option).

    These options expire on 9/18/2009, stay tuned.